AU-4.2 AU-4.2 Authorisation of a Branch or Subsidiary
AU-4.2.1
Licensees may open branches in the Kingdom of Bahrain after obtaining the CBB's prior written approval.Licensees are prohibited from opening branches in foreign jurisdictions but may open subsidiaries in such jurisdictions with the CBB prior approval.Amended: April 2011
October 2010Authorisation of a Branch
AU-4.2.2
Unless otherwise directed by the CBB, the following documents must be provided to the CBB in support of an application to open a branch:
(a) A business plan explaining:1) The reasons for applying for a branch, including the applicant's strategy and market objectives; and2) A minimum of three-year financial projection, with all assumptions clearly outlined, demonstrating that the branch will be able to meet all liabilities and obligations;(b) The location of the proposed branch, including the full address;(c) A confirmation that the branch will comply with the minimum security measures for money changerlicensees as specified in Section GR-9.1;(d) Confirmation from the external auditor that thelicensee's capital adequacy is sufficient to support the operation of the branch, in addition to other existing branches (if applicable), at the time of filing the request; and(e) Confirmation from the external auditor that additional capital requirement of BD30,000 (refer to Section CA-1.4), has been deposited in thelicensee's bank account.Amended: April 2011
October 2010Starting Operations of a Branch
AU-4.2.3
Licensees should submit to the CBB confirmation that the authorised branch has commenced operations within 6 months of the authorisation letter.Amended: April 2011
October 2010AU-4.2.4
An application for authorisation of a new branch will not be considered by the CBB unless the written confirmation that the preceding branch is operational, as required in Rule AU-4.2.3 above, has been submitted.
October 2010Authorisation of a Subsidiary
AU-4.2.5
Licensees wishing to establish or acquire a newsubsidiary undertaking must submit to the CBB the following information as part of their request:(a) Proposed name of subsidiary;(b) Country of incorporation;(c) Legal structure;(d) Proposed issued capital;(e) Proposed shareholding structure;(f) Purpose of establishing or acquiring the subsidiary;(g) Draft incorporation documents of the subsidiary;(h) Board resolution approving the establishment or acquisition of the subsidiary; and(i) Any other information or documentation requested by the CBB.Added: April 2011